Level I

Economic profit under monopolistic competition

Firms operating in monopolistic markets produce which type of profits?

  1. Positive economic profits

  2. Negative economic profits

  3. No economic profits

Answer: 1

In a monopolistic industry, positive economic profits are possible and are a function of the price consumers are willing to pay minus the monopoly’s average cost (AC) curve

Capital Markets compliance/risk to IB/ER/S&T?

I have been floating around AF and I’ll admit the forums helped me complete level 1. I am doing level 2 in 2016 which seems very far away. I have a questions for the readers/writers here in regards to career moves.

Fed rate hike = stong $$ VS. interest rate parity/// contadiction???

I have just come across the concept of interest rate parity in my studies and found it very interesting.  The basic form being  FORWARD = SPOT[(1+domestic interest rate)/(1+foreign interest rate)]  To not follow this relationship leads to an arbitrage opportunity so it should hold most of the time…..so I see this as way to make a call on using what is known about  interest rates to make a prediciton on where currencies will head or   vise versa. 

Portfolio Management

Hi guys, I was just reviewing the portfolio management part for the cfa 1 exam. I found an exercise concerning portfolio diversification, but I am not sure how I should start :/

Maybe you have a good idea? :)

You are a portfolio manager for the local mutual fund.

You are given $25 m to invest in alternative assets.

You should implement a strategy involving the definition of objectives and constraints. And set as a goal an enhanced return for a given level of risk.

You should put as a priority :

Question about Monte Carlo Simulation

Suppose an investor has 60 percent accuracy in forecasting bull market and 80 percent accuracy in forecasting bear market (a 60–80 timer).

Regarding payment change option

Hi all,

I have mentioned payment by bank/wire transfer mode while filling the form. How do i change thrle payment mode to credit card?


CFA Level 1 Study Group - Cincinnati, OH

If your in the area, shoot me a message - would love to get together with some other like-minded people who are striving towards the same goal. 

How do you know when you're ready to pass Level 1?

Hello AF,

I just got my Schweser books today.  A curious thought just occurred to me though.  After studying with these books how do you know when you’re ready to take the test and pass?  Is there a certain level of success with ???? that you have to achieve?  Are there other elements and success queues that you can look out for to know you’ll take it and pass.

Actually, I tried searching for a thread with this topic but came up blank.


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